Along with the listed members we were able to break down the main components of lean tenets and their importance.

1. Chapter 7 - Lean Tenets
“Lean Thinking #1”
By: Ashley DeOliveira, Michael DiSanto, Jacob Toomey, Jonathan Villa, Andrew Furtado, Eric Lepage, Joshua
Fickert

2. Introduction Overview
Lean thinking is a business
methodology that attempts to
provide new ways of thinking on
how to organize activities that
eliminate waste but bring the
most benefits to individuals and
the society itself by using the five
key points value, stream, flow,
pull, and perfection.

3. First Tenet
“Specify precisely what about a product or service creates value from the
customer’s perspective”
- Value is defined by the customer and provided in the product or service the
customer needs at a place, time, and price the customer is willing to pay.
- Not what the company says but what the customers say.
- It is also dynamic in nature and changes over time
- Customers are willing to pay for better solutions.
- Firms should shape their design and deliver their goods/services based on
what customer’s value and stop practicing functions that are not valued.

4. First Tenet
- Waste
- is anything that does not contribute
value to the product/service being
produced and delivered to the
customer; rather than adding value,
waste adds cost.
- Firms want to eliminate obvious waste but
there are many hidden forms of waste.
- Japanese term for waste: muda
- Muda or non-value adding time
might include waiting for machines or
labor to become accessible, dealing
with issues like backlogs, searching
for materials or etc…

5. Table 7.1 ~ The Seven Forms of Waste
● Overproduction:
○ Producing more than the demand of the
customers
○ Resulting in:
■ Unnecessary inventory, handling,
paperwork, and warehouse space
● Waiting time:
○ Operators and machines waiting for parts
or work to arrive from suppliers or
operations; customers waiting in line
● Unnecessary transportation:
● Excess processing
○ Poor design or inadequate maintenance of
processes, requiring additional labor or
machine time.
● Too much inventory
○ Excess inventory due to large lot sizes,
obsolete items, poor forecasting, or
improper production planning
● Unnecessary motion
○ Wasted movements of people or extra
walking to get materials

6. "Lean Thinking | Lean Principles." Lean Manufacturing Tools. N.p., n.d. Web. 20 Mar. 2017.

7. TOP 5 LEAN MANUFACTURING COMPANIES
IN THE WORLD➔ 1. Nike
➔ 2. Toyota
➔ 3. John Deere
➔ 4. Caterpillar Inc.
➔ 5. Intel
★ All of these companies have sustainability
projects continuously evolving to keep
waste at a minimum to help protect society
and the environment.
Examples of Lean Projects
● Nike has issued a continuous project to
help cut emissions to an absolute green
company by 2025. (0% Emissions) Nike
gives off a lot of carbon waste and through
improving their machinery and designs
they are using renewable resources in
their footwear and clothing lines.

8. Outline Summary
I. Introduction
A. Lean thinking
1. “Specify precisely what about a product or service creates
value from the customer’s perspective”
II. First Tenet of Lean thinking
A. Value
1. is defined by the customer and provided in the product or
service the customer needs at a place, time, and price the
customer is willing to pay
III. Waste
A. Def: is anything that does not contribute value to the
product/service being produced and delivered to the customer;
rather than adding value, waste adds cost.

9. Sources:
http://leanmanufacturingtools.org/
https://www.lean.org/WhatsLean/Principles.cfm
https://www.asme.org/engineering-
topics/articles/manufacturing-design/5-lean-principles-every-
should-know
Questions?